Climate Active Business Case

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Climate change is one of the greatest challenges - and greatest opportunities - facing Australia today. It will affect all sectors of the economy, with the risks both direct (property damage, asset losses and increased insurance premiums) and indirect (supply chain interruptions, changing customer bases and increased commodity prices). Forward thinking businesses understand that accounting for and reducing their carbon footprint is not only a means of protection against the negative impacts of climate change, but also prepares them for a changing regulatory landscape and low carbon economy. That's why a commitment to climate action is a fundamental part of an organisation's climate risk strategy. 

Energy waste by business costs thousands of dollars a year and contributes to unnecessary GHG emissions. Preparing a comprehensive carbon account enables organisations to identify which activities are most emissions intensive, and where input reductions in materials and resources will result in cost savings. Behavioural and systemic changes that reduce energy use, along with investment in energy efficient technology, can significantly lower operational costs.

Corporations are embedding emissions reduction into their supply chains as a means to cut energy costs, meet regulatory requirements and the growing expectations from the community and stakeholders. Similarly, governments across Australia have procurement policies in place to give preference to low carbon providers. Carbon neutral certification provides a guarantee that your product, service or organisation will not contribute to the carbon footprint of the supply chain; therefore satisfying the procurement requirements of both the public and private sectors.

Many organisations are taking climate action to improve their reputation amongst stakeholders. Going carbon neutral can create brand differentiation and also connect with a greater number, or new group, of stakeholders. Not taking action represents significant legal, financial and reputational risks. In the private sector, there is increasing legal opinion that company directors need to consider climate risk as a matter of due diligence. Additionally, shareholders in Australian companies have motioned for greater climate change disclosure practices with several companies facing shareholder resolutions on climate risk disclosure at their AGMs.

Research indicates that a commitment to sustainability is an increasingly important factor in attracting and retaining talent. Many job seekers want to work for organisations with sustainable practices and employees feel more engaged and purpose-driven at work when their employer has a meaningful and demonstrable social and environmental strategy. With an increased emphasis on reducing emissions both nationally and internationally, carbon neutral certification can assist in developing in-house capacity and capability to understand the opportunities in a low carbon economy and manage potential future compliance obligations.

Source: Climate Active